A lot of millennials are currently suffering under a mountain of college debt and this is making them wary of having credit card debt too. Less than one-third of millennials (people from the age of 18 to 35) own a credit card. This percentage is strikingly low compared to most statistics.
One millennial, who also runs a wealth management blog, said that she has been more careful with her finances because there are not a lot of job opportunities right now. She said that she has found many other millennials taking the same position. Simply put, young people are being careful not to overspend beyond their means. They are being careful not to use credit cards or take risks — even when the risks appear to be “smart” and involve investing.
Indeed, the number of Americans who are under the age of 35 and do not have credit card debt has dropped to the lowest level since the end of the 1980s, which is when the Fed started collecting data on such statistics. This trend is certainly a positive one considering how many Americans are currently suffering under a mountain of credit card debt today.
Credit card debt can become a vicious cycle for Kentucky residents, who are often lost in a mountain of unpaid bills. However, bankruptcy proceedings could be a favorable solution to help individuals climb out of their debt spiral. By filing Chapter 13 or Chapter 7 bankruptcy, individuals can work to resolve their debts with creditors. Chapter 7 involves the liquidation of assets to pay off debts and Chapter 13 involves a court-approved payment plan that lasts for several years.
Source: voanews.com, “Debt-burdened Millennials Wary of Credit Cards,” Faiza Elmasry, Aug. 25, 2016